JMMB Group Sets Stage for Growth with, Digitization and Diversification
The JMMB Group, in outlining its strategic plans at its recent annual general meeting, laid out increased digital transformation and diversification as the key imperatives for driving growth.
Keisha Forbes Ellis, chief country officer, JMMB Group- Jamaica, shared that, “The pandemic has really accelerated digital transformation in the industry. (In response) JMMB Group has also bolstered its focus on its digital suite of solutions.” The company, as such, is looking to introduce enhancements to its online platform, JMMB Moneyline, over this financial year, across the countries it serves, namely: Jamaica, Trinidad and Tobago and the Dominican Republic. This will allow clients to access more services via this platform and is in line with the Group’s “one client, one experience” approach. Additionally, JMMB Group, as part of its improved digital banking platform, is looking to introduce online onboarding, which will facilitate even greater access to its suite of offerings: investments, banking, pension funds management and administration, insurance brokerage and money transfer, and launch its mobile app, subject to the requisite regulatory approval. Forbes Ellis reassured stakeholders that, even as JMMB Group increases its focus on digital transformation, it will remain client-centric. “Regardless of the mode of service delivery, we want you to understand that we are still connecting with you, (just) in a different way, while maintaining our usual JMMB touch (in providing client financial partnership).”
In sharing more about the digital transformation process, general manager, digital services, JMMB Group, Gifford Rankine, outlined that its omni-channel approach will be bolstered, allowing clients to use their preferred medium to access JMMB Group’s suite of solutions, whereby, “you can start in one channel and finish your transaction in another.” Rankine further noted, clients can also look forward to add-ons to the current digital offerings, such as a digital assistant to complement the online chat feature, to increase the service offerings that clients can access 24/7 and more digitization at its physical locations. Clients will, therefore, be able to spend more time on financial planning conversations with their advisors and other value-added services. In addition to enhancing the client experience, the digital transformation lays the foundation for improving the company’s operational efficiency.
These digital solutions build on the foundation that JMMB Group has laid across the Group, having introduced its Visa-enabled debit card in Trinidad and Tobago during the last financial year, real-time trading, JMMB Moneyline online sign-up, and the recent roll-out of intelligent automated teller machines (ATMs), since the start of this financial year, in Trinidad and Tobago and Jamaica.
In her presentation, chief financial officer, JMMB Group – Trinidad and Tobago, Naomi Arjoonsingh, acknowledged that challenges were experienced with the roll-out of the digital solutions in that market, which impacted the company’s client experience. While inviting clients’ understanding, she reassured them that JMMB Group remains committed to add value through these solutions and resolving these teething pains.
Even as JMMB Group looks to build on its digital transformation strategy, the company is seeking to increase its branch network by two integrated locations, in Jamaica and the Dominican Republic, over the short-term, subject to the requisite regulatory approval. Keisha Forbes Ellis revealed that plans are afoot to further build out the JMMB Group branch network in the corporate area, with an integrated location with a digital skew. This decision, she said, was driven by the company’s analysis of clients demographics, needs, preferences, as well as the new norm environment.
Diversification Drives Growth
Keith Duncan, JMMB Group CEO, outlined that the company remained committed to pursue inorganic growth and diversification to bolster the organic growth it has experienced. He shared that as a result of its regional diversification strategy, the Group has achieved solid financial performance, as evidenced its J$7.7 billion in net profit, for the financial year ending March 31, 2021, which is a 9% increase, when compared to the prior year. This was largely driven by the increased contribution from operations in the Dominican Republic, share of profit from its associate company, Sagicor Financial Company (SFC), and the banking business line segment. Juan Melo Jose, chief country officer, JMMB Group-Dominican Republic, revealed that the country operations contributed J$1B towards the company’s net profit, which is a 220% increase over the corresponding period. Additionally, Dominican Republic operations recorded J$3B in revenue, an uptick of 64% over the prior period. This was largely driven by trading gains, through its investment subsidiary, JMMB Puesto de Bolsa, as the company sought to leverage opportunities in the market.
Patrick Ellis, chief financial officer, JMMB Group, outlined that the management and board was pleased with the value that its investment in Sagicor Financial Company provided, by driving shareholder value. He noted that, in addition to core operations, JMMB Group amassed approximately J$1.9 billion in share of profit of its associate in the 2020/21 financial year. In addition, the company’s cash flow and liquidity were positively impacted, as the Group received dividends of J$698.4 million; JMMB Group is the single largest shareholder, with 22.73% share ownership. Ellis reiterated that the JMMB Group remained adequately capitalized and has maintained solid financial performance, as demonstrated by its first-quarter performance. During this period, the Group saw a jump in its profit to J$1.93B; this reflected a growth of 148% year-over-year. Additionally, the Group posted net operating revenue of J$6.86 billion, which was an increase of 37%, year-over-year, as a result of growth in core business operations.
The JMMB Bank operations in Jamaica and the Dominican Republic also saw stellar growth of 37% and 54% respectively, in its loan portfolio; with this business line contributing 30% to the Group’s profit for the 2020/21 financial year. Operations in Trinidad and Tobago was impacted by the containment approach taken by the government in managing the spread of COVID-19, which saw business operations being restricted as a result of lockdowns, curfews and social distancing measures, in addition to the closure of that country’s borders until July 2021, when the borders reopened.
JMMB Money Transfer (JMMBMT), the Group’s remittance subsidiary, also reported growth of 44% in revenue, driven by increased volumes, in line with the overall uptick in inflows to Jamaica; coupled by the expansive network that JMMBMT has sought to build out and improvements in processes, to enhance the ease and convenience of sending money to Jamaica, via its 8 remittance partners.
Duncan outlined that the JMMB Group is seeking to further leverage its diversification strategy, to drive its profitability and shareholder value. He also revealed that the company has an active pipeline of acquisitions that it is exploring, with prioritization being given to the banking business line, in keeping with the Group’s strategy to grow inorganically, as evidenced by its acquisition of Capital and Credit Financial Group in Jamaica, Intercommercial Bank Limited (IBL) in Trinidad and Tobago and Banco Ahorro y Credito Rio (Banco Rio) in the Dominican Republic. The CEO also revealed that the JMMB Group of the future will continue to expand and enhance offerings to include payment services, mobile and other online experiences and data analytics tools to better serve clients, with a ‘client first’ approach.